ATA Holdings Corp. Extends Exchange Offers

29 September 2003

ATA Holdings Corp. (Nasdaq:ATAH), the parent company of ATA Airlines, Inc., today announced the extension of its offers to exchange (the “Exchange Offers”): —newly issued 11 percent Senior Notes due 2009 (the “2009 Notes”) and cash consideration for any and all of the $175 million outstanding principal amount of its 10 1/2 percent Senior Notes due 2004 (the “2004 Notes”); and

—newly issued 10 1/8 percent Senior Notes due 2010 (together with the 2009 Notes, the “New Notes”) and cash consideration for any and all of the $125 million outstanding principal amount of its 9 5/8 percent Senior Notes due 2005 (the “2005 Notes” and, together with the 2004 Notes, the “Existing Notes”).
As part of the Exchange Offers, ATA Holdings Corp. is also seeking solicitations of consents to amend the indentures under which the Existing Notes were issued. ATA Holdings Corp. has extended the expiration date of the Exchange Offers until 5 p.m., New York City Time, on October 10, 2003, unless further extended by ATA Holdings Corp. In addition, ATA Holdings Corp. has extended the deadline for holders of Existing Notes to deliver consents and receive the consent payment to October 10, 2003, unless further extended by ATA Holdings Corp.
The withdrawal deadline for the Exchange Offers has expired, and any Existing Notes that have already been tendered or are subsequently tendered may not be withdrawn. The other terms of the Exchange Offers remain unchanged, and they are subject to a number of significant conditions, including but not limited to receiving valid tenders representing at least 85 percent in principal amount of each series of Existing Notes and receiving the consent of the Air Transportation Stabilization Board (ATSB) pursuant to ATA Holdings Corp.`s government-guaranteed term loan. As of September 26, 2003, $11,510,000 principal amount of 2004 Notes and $29,550,000 principal amount of 2005 Notes had been tendered and not withdrawn in the Exchange Offers.
The Exchange Offers are being made pursuant to the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”). The New Notes offered in the Exchange Offers have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. This announcement is not an offer to exchange, a solicitation of an offer to exchange or a solicitation of tenders with respect to any 2004 Notes or 2005 Notes, nor is this an offer to sell or the solicitation of an offer to buy any New Notes in any state in which such offer, solicitation or sale would be unlawful.